The tactic of overbooking or overselling the available asset is suitable in any situation where customers are able to cancel orders and the value of the asset drops significantly after a deadline

Indicate whether the statement is true or false.

Answer: TRUE

Business

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Which of the following statements about cost allocation is most correct?

a. The direct method of allocation recognizes services provided by support departments to one another. b. A cost driver is any grouping of overhead costs that must be allocated. c. The reciprocal method of allocation represents a compromise between the direct method and the step-down method. d. A cost pool is the total amount of direct costs incurred by one of the patient service departments. e. None of the above statements are correct.

Business

Direct effects of FDI on employment in the host country arise when a foreign MNE:

A. brings in managers trained in the latest management techniques from the home country. B. creates jobs because of increased local spending by employees of the MNE. C. employs a number of host country citizens. D. causes local suppliers to hire more people. E. creates jobs in the supporting industries.

Business